An executive of the Indian mobile phone company said that small companies in the sector are facing losses of Rs 5-6 crore per day and it is higher for bigger companies. (Photo Credit: Pixabay)
India's mobile phone sector is likely to face a loss to the tune of Rs 15,000 crore due to an impact on sales in the wake of coronavirus lockdown in the country, according to industry players. The companies are also facing problems in shipping ready products in the overseas market due to the present crisis. "The industry is likely to face a loss of around Rs 15,000 crore due to lockdown. This is based on the present situation. We are speaking to our members and approaching the government to mitigate the impact," India Cellular and Electronics Association chairman Pankaj Mohindroo told PTI. (Coronavirus Outbreak LIVE)
He said the government has supported the industry to the best it can, but the country has a lockdown as the best available option to curb the spread of coronavirus and all companies are cooperating. Xiaomi, which leads India's smartphone market, announced work from home for all 30,000 people engaged in its project even before the lockdown was announced. Prime Minister Narendra Modi announced a 21-day lockdown starting March 24 in the country to contain the virus spread.
An executive of the Indian mobile phone company said that small companies in the sector are facing losses of Rs 5-6 crore per day and it is higher for bigger companies. "The Indian mobile sector has been hit by the impact of coronavirus since December. Earlier, the business suffered due to supply of components from China... and now we are facing issues in shipments of ready products. There has been no revenue collection since March 23 for companies that sell through retail stores. There are fixed costs that all the companies have to bear without any revenue in flow. Small firms are facing loss of Rs 5-6 crore per day," the executive said.
There are around 268 companies in India that operate in the mobile manufacturing segment. The production of mobile phones in the country stood at around Rs 1.7 lakh crore in 2018-19 and the domestic demand is almost completely being met out of domestic production.